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Tesla confronts Service complaints with new AI-backed strategy
Tesla will use a new AI Agent to help expedite Service claims and improve communication with customers.
Tesla is implementing a new AI-based strategy to improve service for owners. Service has routinely been among the biggest complaints of owners, although it has improved drastically over the past few years.
Some of the complaints that Tesla has received regarding its Service platform have evidently been used to develop new strategies to not only streamline the entire experience but also to make things easier for the company, which deals with many claims each week.
As a result of complaints in the past, Tesla has used various strategies to make things better for customers. However, the latest improvement comes as a result of AI, something Tesla leans on in many facets of its business.
Tesla adds ingenious solution to app to streamline Service appointments
Tesla’s AI and IT Infrastructure, Cybersecurity, and Vehicle Service head Raj Jegannathan said on X this week that the company is rolling out a new AI Agent specifically designed to handle service comms with customers.
He said the new Service AI Agent will detect delays in communications between the company and the customers, monitor the sentiment of these conversations, and auto-escalate certain claims directly to leaders.
It will also allow customers to type the word ‘Escalate’ in the message center portion of the phone app after two weeks of delays. This will help customers reach higher-ups more easily and likely will eliminate the complaints that many have had over the past few years.
The company is rolling out the AI Agent in ten pilot locations to start. Its first day being active was May 8.
Jegannathan said:
“Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!”
Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!
— Raj Jegannathan (@r_jegaa) May 8, 2025
Service has had a lot of interesting strategies used to improve things, but it has definitely been a weak point of the Tesla ownership experience. In a perfect world, vehicles wouldn’t need repair for anything, but that is not realistic.
Instead, Tesla has worked to expedite the entire Service experience through various strategies, including F1-style service, and a goal to fix two-thirds of repair claims within the same day.
Parts availability sometimes takes this goal out of reasonableness, but these constant attempts at improving the repair experience show Tesla is doing what it can to make things better for owners.
News
Tesla Insurance officially expands to new U.S. state
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.
Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.
Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.
BREAKING: Tesla Insurance has just officially launched in Florida.
This is the first new state to receive @Tesla Insurance in more than 3 years. In total, Tesla insurance is now available in 13 U.S. states (map in thread below of all the states).
Tesla Insurance in Florida uses… pic.twitter.com/bDwh1IV6gD
— Sawyer Merritt (@SawyerMerritt) December 17, 2025
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.
Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.
Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.
However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.
Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.
News
Tesla Full Self-Driving gets sparkling review from South Korean politician
“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”
Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.
Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.
Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”
드디어 오늘, 서울에서 테슬라 FSD 체험 했습니다.
JiDal Papa님의 모델S 협찬에 힘입어^^ 파파님 정말 감사합니다.
국회 -> 망원시장 -> 홍익대 -> 국회 복귀 코스였고요.
이미 무인 로보택시를 타봐서 그런지 신기함은
덜했지만, 웬만한 사람만큼 운전을 잘하네요.이미 완성된 기술이라고… pic.twitter.com/8pAidHBpRG
— 이소영 국회의원 (Soyoung Lee) (@im_soyounglee) December 17, 2025
Her translated post says:
“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”
Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.
It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.
It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.
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Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
Tesla Insurance officially expands to new U.S. state
Tesla Full Self-Driving gets sparkling review from South Korean politician
